RE:RE:RE:Touchstone Why Invest - 4 Monetization of Assets Silly!75% decline in the first year? That might be true for a SHALE OIL well, but no way that will be CLOSE to the decline rates on these wells. They will produce at or close to capacity for many years to come. Did you read about the well in the area that have been producing for decades?
2,5$ is at the well head. This means NO CAPEX for pipes, and related stuff. And i would strongly guess there is an inflation adjustment to that number. And it can be renegotiated in 5 years.
Yes, finances might have been better but getting Coho online, and then soon to come online Cascadura they will be in a excellent situation. The only question is how they bridge the gap. Personally I can see them going for debt first. But why would they need to hurry so much with more exploration. Oil prices is tanking at the moment over Omicron fears and new shutdowns. No need to hurry it. Just finish testing this thing now and rake in the cash. Lay the plans. Get Coho in production, Get Casca in production and then go for further exploration. Unless Royston is a huge find with excellent flow. Then they can go to the bank, get a bigger loan and start developing it instantly drilling several oil wells with loaned money and build a huge cash cow. The way I see it. The markets want a equity placing but the chances of this is not as high as people think it is...
As for the share price. People sold turmaline stones found in paraiba for motorcycles not knowing its true value. When you have uneducated people selling high value stocks for next to nothing you buy it and laugh at the people selling. I have never laughed so hard and for so long!